The range will include misshapen strawberries for jam-making and knobbly potatoes for soup and will feature packaging that encourages shoppers to scratch cook. Asda aims to have it in store by autumn.
"Just because they don't look nice doesn't mean to say they don't taste great," said a spokeswoman.
Retailers were previously prevented by EU rules from selling some fruit and vegetables that did not meet size or shape criteria.
However, new rules that came into force this week repealed standards for 26 fruits and vegetables - although 10 of the most commonly sold items, which account for 75% of sales, will still be subject to some restrictions. The main requirement will be that they are labelled and sold as, for example, 'suitable for processing'.